There is a significant difference between the average and median American savings balance. We’ve gathered the data on the average savings by age and the median savings, showing how they grow with time. We’ve also covered the data on retirement savings in the US and talked about how savings priorities change depending on age.
Note: the Federal Reserve lumps together all the data for people under 35, so there is no official data for separate ages.
Average Savings by Age: Just the Numbers
The average savings by age 30 is $11,250 (everyone under 35).
The average savings by age 40 is $27,910 (age group 35–44).
The average savings by age 50 is $48,200 (age group 45–54).
The average savings by age 60 is $55,320 (age group 55–64).
The average savings by age 70 is $57,670 (age group 65–74).
The average savings by age 75 and above is $60,410 (75+).
Average Savings by Age: Drastic Mean/Median Difference
More than 98% of all families own transaction accounts, including checking, savings, money market, call accounts, and prepaid debit cards, so if we want to look at American savings, we should look at transaction accounts.
The average American savings for all families is $41,600, according to the official Survey of Consumer Finances 2019 data. It represents a slight drop from 2016, when the average American transaction account held $42,580.
While the average savings account balance can offer some sort of financial safety, on the other hand, the median savings for all families is only $5,300, showing a more realistic picture of US savings.
Age | Median Savings | Average Savings |
|---|---|---|
Under 35 | $3,240 | $11,250 |
35–44 | $4,710 | $27,910 |
45–54 | $5,620 | $48,200 |
55–64 | $6,400 | $55,320 |
65–74 | $8,000 | $57,670 |
75+ | $9,300 | $60,410 |
The pronounced difference between median and average savings in all age groups comes from high-income individuals that skew the mean data so far from the median. This is why we’ll include data about average savings by income, too.
Where do Americans keep their savings? Read our article to find out about America's saving habits.
The average savings of Americans vary greatly by income.
We’ll look at the median savings by percentile of income to understand the financial situation of most people in the US. In the poorest 20%, Americans have around $810 in the median transactions account. The average amount in savings for the second 20% is $2,050. Those in the third percentile (40% to 59.9%) have $4,320, while the fourth percentile (60% to 79.9%) will have $10,000 in savings.
The 80% to 89.9% percentile have a median amount of $20,000 in savings. However, the richest 10% have more than three times as much, with $70,000 in their transactions account if we look at the median, as per the latest statistics on personal finance. For comparison, the mean average for the upper 10% is $229,030.
Non-government data show the average amount of savings decreased in 2022.
Until the new official data by the Federal Reserve come out, we will include data from another reliable source, but with a smaller sample. According to Northwestern Mutual, the average American savings account held $62,000 in 2022, decreasing significantly compared to the previous year’s $73,000.
Average Retirement Savings by Age: It Pays to Start Early
After transaction accounts, retirement accounts (such as thrift savings accounts, individual retirement accounts, Keogh accounts, and employer-sponsored accounts, such as 401(k), 403(b)) are the next most common type of financial asset in the US, held by around a half of all families.
The average amount of retirement savings for all families, regardless of age, is $255,130, as the latest SCF data shows. At the same time, the median retirement savings for all families is $65,000. When it comes to the average retirement income, it varies by state.
Age | Median Retirement Savings | Average Retirement Savings |
|---|---|---|
Under 35 | $13,000 | $30,170 |
35–44 | $60,000 | $131,950 |
45–54 | $100,000 | $254,720 |
55–64 | $134,000 | $408,420 |
65–74 | $164,000 | $426,070 |
75+ | $83,000 | $357,920 |
The median retirement savings of the richest 10% are 35 times higher than the median retirement savings of the poorest 20%.
Retirement accounts by percentile of income hold vastly different amounts of money. If we look at the median retirement savings accounts by income percentiles, the poorest 20% only have $13,000 in retirement savings.
The next 20% have $17,000, and then the 20% of the population by income above that have $28,000. The fourth percentile (60-79.9%) have median retirement savings of $60,000. The ones in the second-richest percentile have $134,000 in retirement savings, and finally, the richest 10% have $460,000, according to data on median retirement accounts.
One-quarter of non-retirees have no retirement savings at all.
What the numbers on savings by age don’t show is that 38% of people between 18 and 29 have no retirement savings whatsoever. The share drops to 25% for individuals aged 30 to 44 and 16% for those aged 45 to 59. However, it’s quite concerning that 13% of people in the US aged 60+ do not have any retirement savings.
In fact, in the bottom 50% of families according to income, not even 40% of families have retirement plans. On the other hand, more than 90% of families in the top 10% have retirement savings. This is why it’s crucial to start thinking about savings on time, even if retirement seems far away.
Average Savings by Age Group: How to Get There
Getting the most out of your savings in your 20s
For most Americans, the average savings by age grow throughout the years, and in the under-35 age group, it amounts to $11,250, or $3,240 if we look at the median. People in their 20s and early 30s often don’t have the means to save larger percentages of their income, being at the start of their careers. At the same time, the average student loan debt in the US totaled $39,381 in 2022, preventing younger people from saving as much as they’d like to. Still, taking control of your spending, making use of automated savings, and starting with your retirement planning are vital for your money to have the time to grow.
Getting the most out of your savings in your 30s
If we look at the average savings by age group, people aged 35–44 have $27,910 in their accounts, going by the mean average or $4,710 in a median transaction account. In their late 30s and early 40s, most people have settled into their careers and have more means to pursue their financial goals, such as retirement planning. The goals should focus on financial safety: increasing your retirement savings, considering life insurance, investments, and working towards a solid emergency fund, as 25% of Americans say they don't have one.
Getting the most out of your savings in your 40s
The average savings balance by age grows significantly in this period, as people between 45 and 54 have a mean average balance of $48,200 but median savings of $5,620. This is a time to consider passive revenue streams, work on paying off debt and add more to your retirement savings and emergency fund. This is a good time to talk to a financial advisor to see if you can improve your savings and investments.
Getting the most out of your savings in your 50s and 60s
The average retirement savings by age 65 (based on data for the 55–64 age group) are $134,000 (we’re focusing on the median since it’s a more realistic goal for most). This is a time when most people have paid off debts such as mortgages and car payments and reached their peak earning years. It’s a good time to consult a trusted advisor to see how the extra money can be invested, with most Americans investing in real estate and stocks.
And although retirement is approaching, there is still time to make important tweaks, so learn more about retirement planning in your 50s and retirement planning in your 60s.
Make Your Money Work for You
To sum up, the official data about the average savings by age show a significant difference between median and average savings. This is true whether we’re talking about a transaction account or the second-most common asset, your retirement account. Most people do not have the average amount at any age, so don’t let that discourage you from saving, investing, and learning more about your financial capabilities.
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